Walt Disney's ESPN has finalized a significant agreement with the National Football League to obtain NFL Network and additional media properties from the league, with NFL receiving a 10 percent equity share in the sports network as compensation, the parties announced early this week.
This agreement, which ESPN claims will enhance the offerings on its forthcoming ESPN streaming service, awaits regulatory clearance. The financial details have not been revealed.
Furthermore, ESPN will acquire NFL Fantasy, a digital platform, and will secure the rights to provide the NFL RedZone television channel to its cable and satellite television subscribers.
“Today’s announcement lays the groundwork for the leading sports media brand in the world and America’s favorite sport to create an even more engaging experience for NFL enthusiasts, in a unique manner that only ESPN and Disney can deliver,” stated Disney CEO Robert Iger.
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The Athletic, which first disclosed last week that a deal was on the horizon, with reports suggesting it could potentially be valued in the billions of dollars.
The ESPN streaming service, which Iger has indicated could launch as soon as this month, will be priced at $29.99 per month.
It will offer access to ESPN’s extensive array of professional and college sports, covering the NFL, NBA, WNBA, MLB, and NCAA Women’s Basketball Championship, in addition to studio programs like “SportsCenter” and “Pardon the Interruption.”
“By integrating these NFL media assets with ESPN’s extensive reach and innovative approach, we are establishing a premier hub for football fans,” declared ESPN Chairman Jimmy Pitaro.
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The NFL Network was initiated in 2003 by the league as part of its strategy to capitalize on the revenue from cable and satellite subscriptions. Despite its popularity, including the introduction of Thursday Night Football, it never became a competitor to ESPN.
With this new agreement, ESPN will own and manage the TV and streaming rights to the NFL Network, which will still showcase seven games each year.
“The sale of the network to ESPN will expand upon this impressive legacy, delivering more NFL football to more fans in fresh and inventive ways,” remarked NFL Commissioner Roger Goodell.
RedZone is a service that enables fans to view scoring opportunities during Sunday afternoon NFL matchups.
The league will continue to oversee, operate, and produce NFL RedZone and maintain rights for its digital distribution. Additionally, the league will keep ownership of certain media entities, like NFL Films, and platforms such as the NFL Podcast Network and NFL+.